As many are aware, there is a reasonably good directional correlation (especially at inflection points) between oil prices and retail stocks (and it even makes some economic sense!).
I have enclosed some charts to illustrate my point.
Retail stocks have benefited from the $10-a-barrel drop in the price of crude over the past month or so. Should oil continue today's reversal, I think you might see some selling in the sector over the near term.
First, the easy overlay chart:
Next, the 12-month rate of change vs. the
S&P Retail Index
(RLX) -- ignore the yellow line on the RLX chart):
Finally, the crude rate of change vs. the RLX's relative performance to the
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